“H.I.S.-tory” byVince Ciotti© 2011 H.I.S. Professionals, LLC, all rights reservedEpisode # 57:DairylandPart 3(Health)
Dairyland’s 1987 “Vision”• We left off last week withSteve and Mark growing thefirm through low pricing for asurprisingly ...
Technology Platform• Mark Middendorf relates how they actually builtit in KADO language on a “monster” CADO mini:– “In the...
Merger Mania• By the 1990s, DCC (Dairyland Computing & Consulting)had grown to over 100 hospitals and $10M revenue.• Steve...
Phone Frenzy• Henderman Management Systems, from Louisville, KY,who also was writing hospital software in RPG for IBMSYS 3...
One More Time!• A few years later, the phone rings again, and this timeit’s Frank Poggio of HMDS, Steve’s Midwest neighbor...
Getting Confused?• I am! And it’s getting more complicated:• In 2001, Dairyland’s new management re-named the firm “Dairyl...
And Finally…• DHS’s final acquisition in 2009 was anotherMidwest competitor, a hot new HIS start-upnamed: American HealthN...
Dénouement…• After gobbling up all these smallercompetitors, it is only fitting that DHS themselves finally gotgobbled – a...
Dénouement…• After gobbling up all these smallercompetitors, it is only fitting that DHS themselves finally gotgobbled – a...
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58. dairyland _part_3

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58. dairyland _part_3

  1. 1. “H.I.S.-tory” byVince Ciotti© 2011 H.I.S. Professionals, LLC, all rights reservedEpisode # 57:DairylandPart 3(Health)
  2. 2. Dairyland’s 1987 “Vision”• We left off last week withSteve and Mark growing thefirm through low pricing for asurprisingly robust system.• Steve sent me this designfrom a 1987 planning meetingwhere they laid out their R &D plans for completing an HIS.– Compare it to the bulletson the previous page ad:they actually delivered!• This has to go down in HIS-tory as one of the earliest“visions” (their productname)of an EMR, E.H.R, HIE,
  3. 3. Technology Platform• Mark Middendorf relates how they actually builtit in KADO language on a “monster” CADO mini:– “In the early days we ran a whole hospital’s financial systemon a machine that had two eight inch, .6MB floppy drives (formass storage – not backup). The machine had 16K of RAM.When the 7.5MB hard drives came out we really thought wehad something – would never run out of storage.”• Mark has since become Director of Business Development forMcKesson’s “Paragon” – I’m sure he’d like to hear from old pals:- 612/272-1185- Mark.Middendrof@McKesson.com• So to continue our tale of how mark & Steve grew Dairyland, wenow get into a series of acquisitions they made starting in the 90s,some of which will be mini-HIS-tories of other early HIS vendors.
  4. 4. Merger Mania• By the 1990s, DCC (Dairyland Computing & Consulting)had grown to over 100 hospitals and $10M revenue.• Steve Klick began feeling his Midwest oats and looked around forother small HIS firms to acquire and grow more, and targeted two:• LeBlanc, Schexnayder & Associates from Abbeville, Louisiana wasthe first to hit Steve’s radar screen: they started as a CPA firmway back in the 60s when Medicare Cost reports drove CFOscrazy. At the request of many hospital clients, they startedbuilding various financial modules just like Steve had, eventuallybuilding a sizeable client base to where, in 1991, they stoppedaccounting and concentrated solely in hospital software.• They wrote in RPG for IBM’s SYS 36/38minis, like other early HIS-es: JS Data & DCC.• Steve started negotiating with them and,concurrently, another small start-up:
  5. 5. Phone Frenzy• Henderman Management Systems, from Louisville, KY,who also was writing hospital software in RPG for IBMSYS 36 minis and were very interested in Steve’s offer.• Steve went back & forth with them negotiating the $s,and tells the amazing story of finally getting a phone call from oneof them accepting his offer, while he heard a series of beeps fromanother caller trying to get through. He finally did the deal, hungup, the phone rang again and, sure enough, it was the other one!• So in one afternoon, DCC had acquired two competitors that justabout doubled its size! Only glitch: different tech platforms:• Dairyland’s “Vision” system ran under AIX on IBM RS/6000s• LeBlanc & Henderman ran under IBM’s OS/400 on AS/400s• The solution? Dairyland now had two “visions” for their clients:• Vision 6000 for the “RISCy” crowd, Vision 400 for the others!
  6. 6. One More Time!• A few years later, the phone rings again, and this timeit’s Frank Poggio of HMDS, Steve’s Midwest neighbor.• Frank tells Steve about another small HIS vendor up for sale:– Integrated Health Systems (IHS) - from La Jolla, California.Like both LeBlanc and Henderman, I.H.S. ran in RPG on OS/400OS, but unlike them, it had a fairly large bed-size client base,from 100 to 40 beds, in keeping with the power of IBM’sAS/400. So the Vision 400 product line suddenly was biggerthan V6000!• Shortly after acquiring I.H.S, in 1998, Steve finally kicked back andleft Dairyland, and interestingly enough, buying I.H.S. for his sonBrady, who runs it to this day under the moniker of IntelligentHealth Systems (same acronym) based in nearby San Diego.• They also run Healthcare Anytimespecializing in SaaS patient portals:
  7. 7. Getting Confused?• I am! And it’s getting more complicated:• In 2001, Dairyland’s new management re-named the firm “Dairyland HealthcareSolutions” (DHS), ruling out agribusiness!• DHS continued to thrive after Steve’s departure, earning several“Best in KLAS” awards for “community” hospital systems (non-AMC or multis), beating out competitors like Meditech, CPSI &HMS (who can tell you some interesting things about KLAS…)• Acquisition fever didn’t depart with Steve: DHS grabbed 2 more:• Advanced Professional Software (APS) of Waco, Texas,acquired in September, 2008, giving Dairyland a foothold inthe deep South. The deal added 140 customers on paper toHealthlands 350-customer base, although competitors likeMeditech, CPSI & HMS probably garnered their fair shareof APS clients who went to market to check out their options...
  8. 8. And Finally…• DHS’s final acquisition in 2009 was anotherMidwest competitor, a hot new HIS start-upnamed: American HealthNet - from (relativelynearby) Omaha, Nebraska, known as AHN.• AHN actually started out as Nelson Data Systems back in the 80s.HIS-tory hero Mark Thornton provided this story – he was AHN’sVP of Sales back then, and is now with another red-hot start-up:• Prognosis – 800/745-4712 Mthornton@prognosishis.com• Mark’s AHN tale: Nelson Data Systems (NDS) was formed in theearly 80s by Steve Nelson (who else?), and they developedfinancial systems for about 50 client hospitals. Two entrepreneursnamed Jerry Brown and Arthur Taylor later bought NDS fromSteve around 2000, and started building a red-hot clinicalplatform called Claris in Bill Gates’ .Net, SQL & Windows. AHNgrew to about 80 hospitals before being gobbled up by DHS in8/2009.
  9. 9. Dénouement…• After gobbling up all these smallercompetitors, it is only fitting that DHS themselves finally gotgobbled – although not by an HIS vendor, but a Venture Capitalfirm known as Francisco Partners from (where else?) San Fran.(That name may sound familiar to HIS devotees as FP also sinceacquired HIS vendor QuadraMed and API, an HR software leader)• As the last thread in this tangled HIS-tory episode (I promise!),DHS’s name was finally changed to rid itself of any vestiges of agri-business (which it never was) or any vestige of its Midwest roots.• The firm is now officially known as:although I got quite a kick a few year’s back visiting their HQ inLouisville, KY (since moved back to Glenwood!), and noticing thesign-in log near the receptionist’s desk still said “Dairyland!”(wonder how many times the old name appears in user manuals?)
  10. 10. Dénouement…• After gobbling up all these smallercompetitors, it is only fitting that DHS themselves finally gotgobbled – although not by an HIS vendor, but a Venture Capitalfirm known as Francisco Partners from (where else?) San Fran.(That name may sound familiar to HIS devotees as FP also sinceacquired HIS vendor QuadraMed and API, an HR software leader)• As the last thread in this tangled HIS-tory episode (I promise!),DHS’s name was finally changed to rid itself of any vestiges of agri-business (which it never was) or any vestige of its Midwest roots.• The firm is now officially known as:although I got quite a kick a few year’s back visiting their HQ inLouisville, KY (since moved back to Glenwood!), and noticing thesign-in log near the receptionist’s desk still said “Dairyland!”(wonder how many times the old name appears in user manuals?)

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